Banks in America

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No population center in America, even the smallest one, is conceivable without a bank building. A small town may have several banks, and in a big city there are tens of them. Like any business, a bank is after a profit, above all. Money is the commodity it sells. To put it simply, a bank seeksстремится to "buy" money cheaply (not necessarily from the Federal Reserve Bank), at an annual six-percent interest, for example, and to sell it dearly (as say, credit to a building company) at an annual interest rate of 11 percent. This is what the banks are busy doing. There are many variations within this pattern, of course. Naturally, the banks put their money where it brings them the highest profit. That is why they always keep up to date with the market situation. By shifting money of various costs from sphere to sphere, from one geographical region to another, the banks actively stimulate progress in industry, construction and agriculture. Besides this, the banks promote the growth - or cause the demise - of individual population centers or even whole regions. Banks are interested in keeping most of their money in circulation so that it should bring them profit. They seek to reduce their lending rates in order to attract buyers. The cuts in interest rates are more than made up for by an increase in the amount of money in circulation. In their pursuit of high profit, the banks sometimes get involved in risky operations fraught with bankruptcy. Therefore the Federal government takes measures to minimize the danger of banks going broke. Every bank is obliged to take out insurance against robbery or bankruptcy lest the clients should lose their money in any case. The banks cater to big and small companies and to individuals.